Link: http://www.megadroid.com

Price: $67

Overview: Megadroid scalps the EUR/USD during the early Asian session.

Description: Megadroid uses the H1 timeframe and scalps during the Asian session. It seems to generate longer trades than most scalpers. Stop Loss pending orders are set automatically within 31 up to 153 points depending on a trade size. Take Profit order is set at much lower values than Stop Loss – from 3 to 11 points.

Backtesting (EUR/USD, H1):

Statement

Here are the official backtests from MegaDroid:

2007:

2008:

2009:

2010:

2011:

Forward Tests (EUR/USD FXOPEN, 2011):
Jan: -243.23
Feb: 203.8
Mar: 721
Apr: -1239.1
May: -32.1
June :57.9
July: No Trade
August: -1034.4
Sept: -18
Oct: 1076.7
Nov: -2353.89
Dec:-616.88
Total: -3478.2

Overall: A robot that looks nice in Official Backtest, but does poorly Live and my own backtests in 2010-2011. Most Asian scalpers will require a good spread which FxOpen provided. The official backtests may have been manipulated as well.

Final Score: out of 5. Some people have reported making a profit, so it may just be a matter of putting the right settings.

Link: http://www.forexoverdrive.com

Price: $99

Overview: This robot peeked my curiosity when I saw how well it was performing on Forex-Robots (which used to provide live tests for EAs).

Description: Use the M5 Timeframe on EUR/USD and GBP/USD. It has a standard Take Profit of 25 and Stop-Loss of 328. Forex Over Drive uses a complex trade entry logic mainly based on price action, moving averages and standard deviation but there is MACD, WPR, DeMarker and Stochastics used as well. To exit a trade there is a trailing stop used in combination with a fixed takeprofit and stoploss.

Backtesting (EUR/USD, M5):

New Version 4

2005 -2006

2006 -2007

2007 – 2008

2008 – 2009

Old Version 3

2005 -2006

2006 -2007

2007 -2008

2008 -09/18/2009 (incomplete due to lack of system resources)

Forward Tests (EUR/USD & GBP/USD, FXDD):

I made an Excel Spreadsheet available from May to September, available here: Forex Overdrive – May to September.

The reason why is that I traded with other robots during that period of time. Lots traded are 0.02 unless otherwise specified. Reports are available by clicking on the month.

Version 3 & 4 (new)
September: -57.72
August: 74.27
July: -23.60
June: -155.20
May: -0.1
April: -82.76
March: -118.82 (0.01 and 0.02 lot)
February: 23.35 (0.01 lot)
January: 46.92(0.01 lot)

Total: -293.66

Overall: As you can see, this robot is junk. The huge stop-loss are ridiculous and this robot has no potential to make you money. The developer insist on using the same settings; I don’t doubt that the advanced strategy it uses could be profitable, but it unfortunately lack optimization.

Final Score: out of 5. Bottom line, it doesn’t make money, support is fairly nonexistent, strategy could be good but hasn’t been adapted and is using way too many indicators.

I know, once again I’m not updating my blog as much as I should. Sometimes I don’t even understand why I still get so many hits, hehe.

Anyway, I’ll be going on vacation as of today until October 10th. I’ll be away to see my family in another province until Sunday so that means my trading terminals will be closed.

I promised that this time, since I’ll actually have the time, I will update that blog when I come back to see my family. I want to share with everyone and especially with those that have been trading currencies with me closely for the last few years my latest development.

Thanks everyone!

Ben

I recently sold 3/4 of my Telus stocks, leaving me with 11. The reason why is that I believe it reached a high point ($54).

It has been testing that level for quite a while now and the reason I didn’t sell all of them is because there is a chance it might also get higher, and I want to keep them on a more long-term basis.

Ben

I updated my Wordpress (the open-source program I use for my blog) to version 2.9 from version 2.0. It was quite a tidious task since I couldn’t upgrade directly to it. I had to go from 2.0 -> 2.2 -> 2.4 -> 2.5 -> 2.7 -> 2.9, and verify that my plug-ins work on the latest version. If you find any bugs, please do not hesitate to contact me.

I also updated my Portfolio with my two trading accounts. I will shortly add my third one. I will put more details about these in my next blog updates.

Cheers,

Ben

While the U.S. was able to extend their debt ceiling window to August 2nd , they will need to come up with $118 billions per month to repay it. (Source: CNN Money)

I believe this will have a huge impact not only on the USD/CAD, but any USD correlated-pair, including commodities.

Let’s take a look at the USD/CAD Daily Chart:

The price has been below and hasn’t even came near the 200 Moving Average (Red) for quite a few months.

There is also a defined Trendline at levels 0.9660, 0.9552 and that broke at 0.9460 but retraced back quickly creating a Hammer Candlestick which is a sign of reversal.

However, by looking at the Fibonacci levels (Blue), since the beginning of May there was a break at all Fibs levels but failed at the 61.8% level and then proceeded to head downwards.

You can also notice the RSI (Light Blue), has been close to the 30 level all month in April and went higher in May, but never breached either 70 or 30.

In conclusion, both on a Fundamental and Technical Analysis level, the USD/CAD is definately a Sell at this level. You might want to wait for a slight uptrend towards the 50/61.8% Fib level to Enter, but I highly doubt it will go higher than that. It would also not hurt to diversify and invest in commodities while the U.S. will keep falling.

I will take advantage of that to inject some money in my currency trading accounts and start trading with larger sums, and also possibly look at other brokers that could be funded in CAD, EUR or GBP instead.

Ben